FONPRODE resources So as to provide annual coverage of FONPRODE’s funding requirements, the GeneralGovernment Budget will assign an allocation under the management of the Ministry of Foreign Affairs and Cooperation. In addition to this allocation, FONPRODE will be funded by resources from repayments or the onerous assignment of loans and credits granted, together with amounts deriving from fees and accrued interest collected on the realization of said financial assets. Types of operation •
FONPRODE finances development projects and programs in less developed countries. The financing takes the form of a State-to-State grant.
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Financial contributions to development programs and international multilateral non-financial development bodies.
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Technical assistance, viability studies, along with ex-ante and ex-post program evaluations.
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Contributions to funds constituted at international financial development institutions for the purpose of meeting basic social needs.
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Furthermore, it is possible to grant credits, loans and financing facilities in concessionary conditions, on a non-tied basis, including contributions to microfinance programs and those providing support for the productive social network.
Arrangement and administration •
As the State’s Financial Agency, ICO, in the name and on behalf of the Spanish Government and on the State’s account, arranges the agreements to be signed with the beneficiaries.
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At the same time, ICO provides services relating to technical execution, accounting, cash, payment agent activities, control and, in general, all those of a financial nature.
C.3. Reciprocal Interest Adjustment Contracts (CARI) Purpose The Interest Make-Up System or Reciprocal Interest Adjustment Contract (CARI) is a system designed to provide official financial backing for the export of Spanish goods and services. Through the system, private financial entities are given an incentive to grant long-term (two or more years) export credits at fixed interest rates. These minimum rates, known as Consensus rates, are regulated by the Organization for Economic Co-operation and Development (OECD). The usefulness of the CARI System from the Spanish exporter's point of view lies in the fact that it enables him to offer the financing of the export contract by means of a long-term credit at a fixed interest rate, under conditions similar to those offered by competitors. How CARI works Every six months, the yield obtained by the financial entity on the credit granted at the Consensus rate is compared with the financing's cost on the interbank market. The difference, plus a management margin acknowledged in favor of the financial entity, is adjusted between
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